Trading Update and Acquisition of Glenart, S.A.

IG Design Group plc, a leading designer, innovator and manufacturer across various celebration and creative categories, provides an update on its financial performance for the year ended 31 March 2026 and post year-end material developments. The trading update refers to the continuing business of the Group only, excluding adjusting items and losses related to the disposal of DG Americas announced in May 2025.

Trading Update

Following the positive trading update issued in February, the Group has continued to experience good trading momentum, and the Board is pleased to announce that FY2026 results are expected to be ahead of market consensus and Board expectations*. The Group expects to report FY2026 revenues of c$292 million and adjusted operating profit of c$12.8 million, representing an adjusted operating margin of 4.4%, and delivering adjusted profit before tax of c$11.5 million**.

Cash has significantly exceeded expectations with year-end net cash of c$72 million. Excluding c$35 million of outflow in the year relating to DG Americas, the continuing Group generated over $20 million of cash during the year, reflecting strong working capital management and $4 million of proceeds from the sale of a surplus UK warehouse. The Group has a strong balance sheet position and an update on the future capital allocation policy will be provided in our full-year results.

The Board acknowledges the ongoing macroeconomic uncertainty, including cost pressures, inflation, and softer consumer confidence, and remains cautious in its outlook. However, the Board is encouraged by FY2026 results and the clear outperformance against expectations set earlier in the year. Together with the recently announced appointment of a Group CEO, this provides a solid platform for continued progress against the Group's long-term strategic growth pillars.

Acquisition of Glenart, S.A.

The Group is pleased to announce the acquisition of 100 percent of the equity interest in Glenart Trading Proprietary Limited, Marcorp Marketing Consultants Proprietary Limited and Glenart Trading Limited (collectively referred to as 'Glenart S.A.') for a total consideration of c£5.3 million (including c£1.3m of cash within the business and working capital adjustments). The consideration comprises an initial cash payment of c£3.4 million, with deferred consideration payable over three years, and additional potential earn-out consideration contingent on future business performance. The acquisition is financed from working capital and expected to be earnings enhancing. For the year ended 28 February 2026, the business reported unaudited revenues of c£4million, PBIT of c£0.8 million and EBITDA of c£1million, from a net asset base of c£2.7 million.

Glenart S.A. is a South African manufacturer within the Group's "Celebrate" category, with a particular strength in crackers, and is therefore highly complementary to the Group's existing operations. The business generates the majority of its revenues in South Africa, the UK and the USA, and operates across similar mass-market and trade channels to the Group. The Board considers the acquisition a bolt-on, strategically aligned and a compelling opportunity to expand the Group's geographical presence in a complementary product offering.

* Current guidance: revenue $280-285 million, adjusted operating margin 4% and cash $55-60 million. We believe consensus to be revenue $282 million, adjusted operating margin 4% and cash $56 million.

** The Group intends to adopt GBP as its presentational currency for consolidated financial statements, replacing USD, effective from the FY2026 full-year results.